Original post didn't get too much attention, but I got some really good comments and have some exciting updates I thought I'd share.
Firstly, I learned that my credit union charging 10k to refi had to do with them not being able to roll the fees into refi. Not a bad deal necessarily, but not what I was looking for. I got in touch with a broker and got some quotes based of my credit score(not great) and also talked about what options would be available if I eliminated the debt and raised my credit score. There were a bunch of numbers but basically if I can get my credit score up to 720+ I can get a sub 3% APR on a 30 year refi for 2400(estimate obviously).
Based on this research and the general consensus from the first post, we decided it was best to take the 10k from my dad and apply it towards paying down the 15k of CC debt and revisit refinancing when my credit was better.
So I compiled all my research, the numbers, the plan, etc in a google doc and shared it with my parents. They weren't just going to give me the money with no plan so I made sure to include dates and specific goals. He looked at the numbers and asked to clarify a few things and made some suggestions and then asked "What would it mean to you to have no more credit card debt?" I spluttered out some answer about how it would be life changing for me, my wife and my daughter and he just said "Well that's all I wanted to hear. Check your account." Checking account was 15k higher than 30 minutes ago. Wife and I broke down in tears and thanked them profusely. Immediately paid the credit cards and now we are CC debt free!
Our plan for so long has revolved around paying down the CC debt that I'm still figuring out what our new goals look like. They definitely include never accruing CC debt again though. We have one car payment(other is paid off) so I suppose I will attack that loan aggressively and pay extra principal on the mortgage until my credit is good enough for to refinance. We have a 7k emergency fund which will help us stay out of debt due to unforeseen expenses and I can now explore additional retirement options outside of my 401k. Anyway it feels so good to not have to worry about credit card debt. I chopped up all but one and will not carry it in my wallet until I can trust myself with it. I appreciate the advice from this sub and am excited to keep building on my financial education.
Submitted July 14, 2020 at 04:23PM by TenBigOnes https://ift.tt/2Wk0g0Q
